Facebook’s block-chain based payment system Libra, in its quest to get regulatory approval, is being rebranded as ‘Diem’. The project that was pushed back in April after regulatory banks raised concern that it would threaten financial institutions, monetary policy and privacy, is trying to show its organizational independence with this move of changing its name.
Stuart Levey, CEO of the association behind the planned cryptocurrency told Reuters that the rebranding is a part of their move to lay focus on a simpler and revised structure. According to Levy, ‘Libra’ was associated with an early version of the project that was not received nicely by the regulators and hence they have ‘dramatically’ revised their proposition.
Libra, now Diem, was initially meant to be a single coin pegged to multiple currencies that could be traded in place of it. Later it was changed to multiple coins with each backed by a different currency. These crypto coins, however, will be a compliment and not a replacement of the domestic currency, it has said earlier.
Diem now proposes to launch a single dollar-backed digital currency. Levy, however, declined to comment on the earlier reports of Diem launching in January as the projects need a nod of the Swiss market regulators.
Facebook’s rebranded payment unit Novi Financial is one of the 27 members of the Diem Association and Novi’s head, David Marcus being one among Diem Associations five board members. While maintaining that Facebook will continue to be a member of Diem he said they just want to give the message that they are operating independently.
Levey said Diem wants to focus on the aspects the regulators and financial organizations flagged earlier like financial crime or sanction control etc. The Diem project will enable businesses to conduct low-cost, highly secure and instantaneous transactions, the CEO said in a press release. It will also work on making policies that will safeguard it from being a platform for money laundering, sanction compliance or terrorist financing. The project has also cancelled its plan to allow anyone to join its digital currency transaction network.
